Briefly
Denver pastor Eli Regalado and his spouse Kaitlyn face 40 felony expenses for allegedly defrauding Christian buyers of $3.4 million by way of the INDXcoin crypto between January 2022 and July 2023.
The couple are accused of pocketing no less than $1.3 million for private bills, together with luxurious holidays, beauty dentistry, and residential renovations they claimed “the Lord” directed them to make.
Regalado admitted to taking the cash in a since-deleted video, saying “these expenses are true” whereas sustaining “God shouldn’t be finished with this undertaking” and asking followers to face by them.
A Denver grand jury has indicted a Colorado pastor and his spouse on 40 felony expenses for allegedly orchestrating a multi-million-dollar crypto rip-off that focused their Christian neighborhood, with the couple accused of pocketing $1.3 million for private luxuries whereas claiming divine steerage.
Eli and Kaitlyn Regalado face expenses of theft, securities fraud, and racketeering after soliciting practically $3.4 million from over 300 buyers between January 2022 and July 2023 for INDXcoin, in accordance with a Tuesday assertion by the Denver District Lawyer’s Workplace.
INDXcoin is a cryptocurrency they created and marketed by way of their online-only Victorious Grace Church, the assertion mentioned.
Investigators say the Regalados used their faith-based connections to vow exorbitant returns whereas claiming God had directed the enterprise as a “wealth switch” for his folks.
INDXcoin maintained zero worth all through its existence, that means all buyers misplaced their total investments.
The crypto might solely be exchanged by way of Kingdom Wealth Trade, a platform the Regalados managed and allegedly shut down periodically to forestall buyers from withdrawing funds.
When buyers grew cautious of INDXcoin’s lack of returns, Eli Regalado reportedly advised them “the Lord” was directing everybody to carry their positions.
“When you look intently in any respect types of crypto and on-line scams, scammers typically trick human minds by triggering worry, greed, and FOMO slightly than hacking methods,” Karan Pujara, founding father of the rip-off protection platform ScamBuzzer, beforehand advised Decrypt.
“The worldwide nature of crypto makes it troublesome to work with country-specific rules to get well funds, in addition to for submitting authorized complaints,” he added.
“Assured by God”
The couple allegedly spent nearly all of the $1.3 million on beauty dentistry, luxurious purses, snowmobiles, and luxurious holidays,” in accordance with the Colorado Securities Fee’s assertion in January 2024.
Of the greater than $3 million raised from buyers, Regalado claimed that half went to the Inside Income Service on taxes, whereas stating that “a couple of hundred thousand {dollars} went to a house transform that the Lord advised us to do.”
In a since-deleted video posted in January 2024, Eli Regalado admitted the allegations had been correct.
Nonetheless, he maintained that “God shouldn’t be finished with this undertaking” and requested his followers to face by the couple.
In response to authorized filings made by the state, the pastor had advised buyers their success was “assured by God” and dismissed authorized skilled recommendation that INDXcoin constituted a safety requiring correct registration.
“These expenses mark a significant step ahead in our work to carry the Regalados accountable for his or her alleged crimes and to deliver a measure of justice to the victims,” mentioned Denver District Lawyer John Walsh.
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